Help to buy scheme 2014

Help to Buy is a series of Government schemes aimed at helping homebuyers without a large deposit to get a mortgage. Assistance is provided through either an equity loan or a mortgage guarantee.

Help to Buy - Equity Loan

This scheme is aimed at helping first time buyers and homemovers with a deposit as small as 5 per cent to buy a new build property in England.

The Government will provide borrowers with a loan for 20 per cent of the property, meaning only a 75 per cent mortgage is required from a lender.

This scheme is available in England now until March 31, 2016.

Find out more about Help to Buy Equity Loans

Help to Buy - Mortgage Guarantee

This scheme is designed to help homeowners as well as first time buyers to purchase either a new build or an existing property in the UK with as little as 5 per cent deposit.

A mortgage of up to 95 per cent is required from a lender, of which the Government will guarantee the lender up to 15 per cent of the property’s value.

The Government guarantees officially apply from January 2014, but borrowers can already begin applying for and receiving the loans today.

Find out more about Help to Buy Mortgage Guarantee

Help to Buy ISA

If you're a first-time buyer who is saving for a deposit, the Chancellor George Osborne has announced he will give you a helping hand.

In the Budget 2015, he unveiled the Help to Buy Isa that gives a bonus of £50 for every £200 saved.

Buyers can receive a maximum bonus of £3,000 on savings of £12,000. It means first-time buyers saving for a deposit of up to £15,000 are able to reach their target faster.

Find out more about Help to Buy ISA

Help to Buy (Scotland)

Backed by the Scottish Government, the scheme is designed to help people buy a new build home in Scotland from a participating home builder.

Open to all home buyers, not just first time buyers, and provides help of up to 20 per cent of the purchase price of a home without interest charges.

Find out more about Help to Buy Scotland

Help to Buy (Wales)

Backed by the Welsh Government, the scheme is designed to help people buy a new build home in Wales from a participating home builder.

Open to all home buyers, not just first time buyers, and provides help of up to 20 per cent of the purchase price of a home.

Find out more about Help to Buy Wales

Help to Buy (London)

Help to Buy Equity Loans are already open to both first-time buyers and home movers on new build homes in England with a purchase price up to £600,000.

Currently, if you're able to pay at least 5% the value of your home as a deposit, the government will lend you up to 20% of the rest of the value of the property, alongside your mortgage of up to 75%.

Equity Loan will be now available until 2021. And, to reflect the current property market in London, from early 2016 the government will increase the upper limit for the equity loan it gives new buyers within Greater London from 20% to 40%.

With London Help to Buy equity loan:

  • you'll need to contribute at least 5% of the property price as a deposit
  • the government will give you a loan for up to 40% of the price
  • you'll need a mortgage of up to 55% to cover the rest